The influence of organizational learning capability and organizational creativity on organizational innovation of Universities in East Java, Indonesia - Scientific Repository

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PENJELASAN HASIL CEK PLAGIARISME

1. NAMA JURNAL : ASIA PACIFIC MANAGEMENT REVIEW VOL. 22 NO. 1 TAHUN

2017

2. JUDUL

: THE INFLUENCE OF ORGANIZATIONAL LEARNING

CAPABILITY AND ORGANIZATIONAL CREATIVITY ON

ORGANIZATIONAL INNOVATION OF UNIVERSITIES IN EAST

JAVA, INDONESIA

3. HASIK CEK

: 19%

4. PENJELASAN :

3% SAMA DENGAN ARTIKEL PENULIS SENDIRI YANG DIUNGGAH PADA

REPO-SITORI UNIVERSITAS KRISTEN PETRA TEMPAT PENULIS BEKERJA.

2% MENGUTIP DARI ARTIKEL LAIN KARYA TULIS PENULIS PADA JURNAL LAIN.

14% BEBERAPA SUMBER KUTIPAN SAMA DENGAN KUTIPAN YANG

DIPUBLIKA-SIKAN OLEH PIHAK LAIN.

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Plagiarism Percentage

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paper text:

Asia Pacific Management Review xxx (2017) 1e8 HOSTED BY Contents

lists available at ScienceDirect Asia Pacific Management Review journal homepage: www.elsevier.com/locate/apmrv The influence of

organizational learning capability and organizational creativity on

organizational innovation of Universities in East Java, Indonesia Eddy Madiono Sutanto Management

Department, Faculty of Economics,

Petra Christian University, Surabaya, Indonesia article info Article

history: Received

11 March 2015 Accepted 29 November 2016 Available online xxx Keywords:

Organizational learning capability Organizational creativity

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abstract In traditional business settings, learning capability and creativity are significant factors to push an innovation level. However, it's wondered whether if the same phenomenon will take place in higher educational institutions. This research used purposive random sampling method which involved 179 lecturers from all

universities in East Java Province of Indonesia. The results

indicated that both variables influenced organizational innovation, partially and simultaneously. There was no difference category either on public or private universities on those variables. Discussions and suggestions are provided to enhance further researches and universities management. © 2016

College of Management, National Cheng Kung University. Production

Globalization has made changes in many sectors. Each change demands higher product quality and higher service. The high demands cannot be avoided by people who work in commercial en- terprise and industry and also by people who exercise in other sectors, such as university administrators. Ace of the needs faced by university administrators is to enhance a performance which cre- ates a learning procedure which will yield graduates who are able to fill the needs of this historic period. This immense challenge requires changes in leadership, learning capacity, creativity, and innovative capability in all the components of the university. Higher education is very important and vital for a country's development. Universities have the role and function as the center of knowledge and change, therefore universities should produce highly resourceful graduates (Hartanto, 2009). The university's role as an agent of change can become an alternative parameter based on the university's ideology which is known as the university's three duties which include education/instruction, research, and community service (Munir, 2009). Universities in Indonesia are facing this huge challenge. This is E-mail address: esutanto@petra.ac.id.

Peer review under responsibility of College of Management, National Cheng Kung University. paired with the ratification of

Asean Economic Community (AEC) by the close of 2015. Subsequently the government signs the free trade pact, there will be greater competitions faced by the universities, namely among universities in Indonesia, and also

between Indonesian universities and foreign universities which may over- whelm Indonesia in the near future. The great environmental and

expectations changes faced by university graduates require universities to develop new and effective approaches, paradigms, practices, and strategies. The orientation of university management, including the management of the faculties and departments within the university should be readjusted. Universities should reorient, restructure, and redefine their organization, management, and strategies. The universities' contribution towards our country's competitive advantage can be increased if the organizational health of higher education is good. Universities are required to produce highly qualified graduates with

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rendered to the residential area. In order to meet these demands, Indonesian Uni- versities are obliged to make changes through professional, pro- gressive, creative, and innovative management, and

entrepreneurial leadership. The university administrators hold

an important role in the success of the

university's programs including entrepreneurship

http://dx.doi.org/10.1016/j.apmrv. 2016.11 .002 1029-3132/© 2016 College

of Management, National Cheng Kung University. Production and

program. As the holder of authority in the university departments, university administrators have a central position and role. If the university administrators as a leader do not have leadership, capability, creativity, and innovative power, a department may go into a steep path. Thus, it is necessary to perform researches which study the university administrators' role in supporting their organization to achieve the expected performance. The huge growth of information and communication technology at present and in the future will increase the flow of globalization around the Earth. This will increase competitions and uncertainty in industry and business. This alteration does not only affect profit oriented companies, but universities also. Therefore, universities are looking bigger and harder challenges. The competitions among universities are getting more exacting. This situation compels university administrators to continuously seek creative and advanced schemes in order to exist or to win the contests. Suc- cessful universities are not only successful in attaining their vision and missionary post, but also successful in contributing to overcome educated unemployment, by focusing on entrepreneurship programs in order to develop new

entrepreneurs. Several researchers have studied the influence of innovation variable or organizational innovation variable on performance. Innovation is regarded as an important factor in the company's performance and company's survival within a competitive sur- roundings (Aragon-Correa, Garcia-Morales, & Cordon-Pozo, 2007; Bello, Lohtia, & Sangtani, 2004; Bueno & Ordon~ez, 2004; Dam- anpour & Gopalakrishnan, 2001; Ho, 2011; Salim & Sulaiman, 2011).

The capability to learn is a necessary factor for an organization to grow

and to innovate

(Hult, Hurley, & Knight, 2004; Jimenez-Jimenez & Sanz-Valle, 2011;

Jerez-Gomez Cespedes-Lor- ente & Valle-Cabrera, 2005;

Lynn & Akgün, 2000). Effective organizational innovation

is the key to build and maintain a competitive advantage to face environmental changes (Lemon & Sahota, 2004; Liao, Fei, & Liu, 2008).

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& Walumbwa, 2009). Moreover, both innovation and transformational leadership influence on organi-zational performance (Samad, 2012).

Leaders influence employees' innovative behavior, both through their deliberate actions aiming to stimulate idea generation and application

as well as by their more general, daily behavior (De Jong & Den Hartog,

2007).

This is supported by the finding which proves that an effective leader in-fluences his followers to show expected behavior in order to reach

expected goals. Leadership style influences organizational effec- tivity or

organizational performance (Nahavandi, 2002, p. 125). Yang (2008) adds that transformational leadership has a more significant correlation with business

performance compared to other leadership styles. This research focussed on

the

management of accredited universities (with grades A and B) which offer undergraduate programs in East Java, which have entrepreneurship program in their learning-instructing processes. University departments with grade A and B accreditation represent other university departments in Indonesia and can be considered as an important and valuable standard. The

accreditation status of a university department shows the quality of the

education process in the

department (National Accreditation Board of Higher Education, 2014). This research observed the opinions of lecturers of undergraduate programs with class A and B accreditation in East Java who had full knowledge of their departments, especially their leaders or heads of sections. It was expected that this research might give inputs for developing a model for the management of university departments which can meet the challenges of this age. The aims of this research were as follows: to test and

analyze the influence of organizational learning capability on

organizational

innovation, the influence of organizational creativity on organizational

innovation, the influence of organizational learning capability and

organizational creativity in organizational innovation

in universities in East Java, Indonesia. 2. Relationship between the concept and the hypothesis of the research 2.1.

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greater the innovation achieved by an organization, the greater also the learning and the change required by the system. The foundation of

organizational knowledge through which new knowledge is gained from

existing knowledge (organizational learning)

stimulates organizational innovation

(Sanz-Valle, Naranjo-Valencia, Jimenez-Jimenez, & Perez-Caballero,

2011).

A high innovation requires a high and effective organizational learning capability (Ho, 2011). A learning organization is an innovative organization (Nooteboom, 2010, p. 131).

Organizational learning capability has a positive and significant

influence on

company's innovation (Chung, Sue, & Guan, 2011; Tohidi & Mandegari, 2012). This research aimed to recover out the relationship between these variables by proposing the following theory: H1.

Organizational learning capability has a substantial influence

on organizational innovation of universities in East Java, Indonesia.

2.2. Organizational creativity and organizational innovation Creativity is an

important

element of innovation. A company needs processes, operations, and structures which enable timely and efficient performance of projects so that its wares are genuinely innovative (Stamm, 2008). Invention is an execution of successful creative ideas in an organization (De Sousa, Pellissier, & Monteiro, 2012).

According to this view, individual and group creativity is the starting point of

innovation. Nevertheless, a successful innovation also depends on other components such as transfer of technology.

This research sought to ascertain out the relationship between these

variables by proposing the following

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on organizational innovation of universities in East Java, Indonesia.

This research was performed to test and analyze the relationship or influence between the variables as detailed above and as can be seen in the conceptual frame in Fig. 1. 3. Research method This was a quantitative research project. The approach used

in this research was through multiple linear regression analysis, which aimed to test and analyze the

influence between independent (exogen) variable and dependent (endogen) variable. The population was lecturers of undergraduate programs by grade A and B accreditation of universities in East Java,

Indonesia. This research used purposive sampling technique or sampling with specific consideration (Sugiyono, 2013, p. 122). The data collection technique used was through questionnaire of respondents' characteristics, research variables, and open ques- tions. These questionnaires were distributed via emails to the lecturers. Six of the 185 questionnaires collected from the respondents E.M. Sutanto /

Asia Pacific Management Review xxx (2017) 1e8 3

were considered not valid because they were sent by lecturers of unaccredited university programs. Thus, the number of the questionnaires processed was 179,

which are 62 public universities and 117 private universities. The

collected data was processed through initial tests which included

validity test, reliability test, classical assumption test, and multiple

linear regression analysis,

using the SPSS version 21.0. The validity test used the comparison of calculated r. If the calculated r was positive and > critical r which was 0.30, the data was considered valid. If the calculated r was negative and <0.30, the data was considered not valid (Sugiyono, 2013). The reliability test was performed to find out how far the measurement results were consistent if the measurement was performed twice or more than twice in a similar situation with similar measurement tool (Siregar, 2013). If the value of the Cronbach Alpha was >0.6, the data could be considered reliable (Priyatno, 2012). We set the operational definition of each variable as follows:

Organizational Learning Capability variable was defined as the

capability

of the department head to produce ideas and generalize the ideas so that they could have impacts on the department. The department head's capability was measured by lecturers' opinions. The

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Ulrich, Nason, and Glinow (1999), namely Discovery Capability, Invention Capability, Implementation Capability, and Diffusion Capability. The organizational Creativity variable was defined as the department head's efforts to create new products, services, ideas, procedures, or processes which were valuable and benefi-cial. This variable would be measured by several indicators to find out the department head's intensity in accomplishing these efforts. The

indicators of Organizational Creativity variable used in this research

were

as proposed by Brown (1989); Harrington (1990); Woodman, Sawyer, and Griffin (1993), namely the presence of new

/creative processes, the presence of new /creative ideas, the presence of new/ creative

persons, the presence of new/creative situations, the presence of new/creative procedures. The organizational Innovation

variable was defined as the department head' s efforts to utilize/execute the

new ideas, behaviors, products, services, technologies, and administrative practices. This variable would be measured by several indicators to find out the department head's intensity in accomplishing these efforts. The

indicators of Organizational Innovation variable used in this research

were

as proposed by Damanpour and Gopalakrishnan (2001); Hage and

Aiken (1970); Oerlemans, Meeus, and Boekema (1998); Zaltman,

Duncan, and Hulbek (1973); Zammuto and O'Connor (1992),

namely utilize/execute new ideas, utilize/ execute new behaviors, utilize/execute new products, utilize/ execute new academic services, utilize/execute new technology, Fig. 1. Conceptual framework.

utilize/execute new administrative practices. 4. Results and analyses The validity test was performed to find out how well a measurement tool measured an object. Following are

the results of the validity tests of the research variables.

Table 1

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the five statements concerning

Organizational Learning Capability was larger than the critical value

which was 0.

3. This proved that the five statements were valid.

Table 2 indicates that the coefficient value of the correlation between

the five statements concerning Organizational Creativity was larger that the critical value which was 0.3. This showed that the five statements were valid. Table 3

indicates that the coefficient value of the correlation between

the six statements concerning Organizational Innovation was larger that the critical value which was 0.3. This showed that the six statements were valid.

The results of the reliability test of the research variables

can be seen in Table 4. The Cronbach Alpha values of the three variables

were larger than the critical point which was 0.6. Thus, the three variables could be considered reliable. The classical assumption test was done to recover out the data pattern, variation, and linearity. Pursuit was the consequence of the classical assumption

test: the normality test was performed to recognize whether the

data had normal distribution or non. This test could be performed through One Sample Kolmogorov-Smirnov Test and graphical analysis (normal P-P plot). The results of the normality test

can be seen in Table 5 and Fig. 2. Table 5 shows that

the data used in this research had a normal distribution. This was indicated by the significance value (Asymp. Sig. (2-tailed)) which was larger than 0.05, namely 0.240, and Fig. 2 shows that the points had the pattern of spreading and following the diagonal line. The multicolinearity test was performed to find out whether there was a perfect correlation between the independent variables or not. The outcome of this examination was good if there was no multicolinearity or if in that location was no perfect correlation between the independent variables. This can be viewed in the tolerance and variance inflating factor (VIF) values. The

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Table 6 shows that there was no multicolinearity between the independent variables of this research. This was suggested by the tolerance value which was larger than 0.1, namely 0380, and the VIF value which was smaller that 10, namely 2.629. The heteroscedasticity test was performed to find out whether there was a variance similarity between the residue of an observation and that of another observation in the regression model. The method used was Glejser and graphic. The results of heteroscedasticity test

can be seen in Table 7 and Fig. 3. Table 7

shows that there was no heteroscedasticity. This was indicated by the significance value of the

Organizational Learning Capability and Organizational Creativity which was larger than 0.05, namely 0.380, and by Fig. 3 which shows that the points spread in an irregular pattern. 4.1. The descriptive analysis of

organizational learning capability The Organizational Learning Capability variable was measured by

using the following indicators, namely discovery capability, invention capability, implementation capability, and difussion capability. Each indicator could be analyzed by observing the mean of respondents' answers. The formula to determine the length of class interval was as follows: Interval ¼ (Highest value e Lowest value): Table 1 Organizational learning capability validity test. Statement Critical point Pearson correlation coefficient Validity Discover the difference between expectation and reality Analyze the differences Invent solutions to overcome the differences Implement the solutions to overcome the differences Apply the solutions to each new situation in order to overcome the differences 0.3 0.3 0.3 0.3 0.3 0.775 Valid 0.912 Valid 0.937 Valid 0.910 Valid 0.893 Valid Table 2 Organizational creativity validity test. Statement Critical point Pearson correlation coefficient Validity Create new elements for development Develop new/creative ideas for development Awaken people's creativity for development Construct new/creative situations for development Make new/creative methods or procedures for development 0.3 0.3 0.3 0.3 0.3 0.909 Valid 0.910 Valid 0.885 Valid 0.883 Valid 0.874 Valid Table 3 Organizational innovation validity test. Statement Critical point Pearson correlation coefficient Validity Utilize/execute new ideas for development Utilize/execute new behaviors for development Utilize/execute new products for development Utilize/execute new academic services for development Utilize/execute new technologies for development Utilize/execute new administrative practices for development 0.3 0.3 0.3 0.3 0.3 0.3 0.884 Valid 0.906 Valid 0.887 Valid 0.865 Valid 0.847 Valid 0.864 Valid

Table 4 Reliability test. Variable Critical point Cronbach's alpha

Remarks Organizational Learning Capability 0.6 0.932 Reliable Organizational Creativity 0.6 0.936 Reliable Organizational Innovation 0.6 0.939 Reliable Table 5 Normality

test. One-sample Kolmogorov-Smirnov test Unstandardized residual N

Normal Parameters (a, b) Most Extreme Differences

Kolmogorov-Smirnov Z Asymp. Sig. (2-tailed) a B 179 Mean 0.000 Std. Deviation 0.471

Absolute 0.077 Positive 0.072 Negative

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Test distribution is Normal Calculated from data Table

6 Multicolinearity test. Variable Tolerance VIF Organizational Learning Capability Organizational Creativity 0.380 0.380 2.629 2.629 number of classes. The interval was (5e1): 3 ¼ 1.33. Based on the mean of the class interval, we determined the categories of Orga- nizational Learning Capability variable, which were high, moderate, and low as seen in Table 8. Fig. 2. Normality test normal P-P Plot. In general, we could say that the Organizational Learning Capability of the universities in East Java, Indonesia was in the moderate category. This was the outcome of the formation of all the indicators, namely discovery, invention, implementation, and diffusion, which were moderate. Thus, the capabilities of the universities in East Java, Indonesia, concerning discovery, invention, implementation, diffusion were neither very good nor very bad. The outcome indicates that there is no difference category either on public (low 5.6%, moderate 13.4%, high 15.6%) or individual E.M. Sutanto /

Asia Pacific Management Review xxx (2017) 1e8 5 Table

7 Heteroskedastisity Glejser test. Variable Count Organizational Learning Capability 0.380 Organizational Creativity 0.380 universities (low 8.4%, moderate 26.3%, high 30.7%). All the universities tend to be moderate and high on Organizational Learning Capability. It seems they try very hard to fulfill the expectation of the Ministry of Higher Education of Indonesia on the level of accreditation of study program or institution. The Ministry values on all attempts of learning process improvement. 4.2. The descriptive analysis of organizational creativity The Organizational creativity variable was assessed by applying the following indicators, namely the presence of fresh

/creative processes, the presence of new /creative ideas, the presence of new/ creative

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Organizational Innovation of the universities in East Java, Indonesia

was in the moderate category. This was the outcome of the formation of all the indicators were moderate. Thus, the innovation of the universities in East Java, Indonesia, concerning utilizing or executing new ideas, behaviors, products, academic services, new technologies, and administrative practices was neither good nor bad. The result shows that there is no difference category either on Fig. 3. Heteroscedasticity test graphs. Table 8 Descriptive analysis of organizational learning capability. Indicator Statement Mean Indicator mean Description Discovery Invention Implementation Diffusion Discover the difference between expectation and reality Analyze the differences Invent solutions to overcome the differences Implement the solutions to overcome the differences Apply the solutions to each new situation in order to overcome the differences TOTAL 3.469 3.453 3.461 3.503 3.503 3.408 3.469 Moderate Moderate Moderate Moderate Moderate Table 9 The descriptive analysis of organizational creativity. Indicator Statement Indicator mean Description The presence of new

/creative processes The presence of new /creative ideas The presence of new /creative

persons The presence of new/creative situations The presence of new/creative procedures Create new elements for development Produce new/creative ideas for development Construct new/creative situations for development Awaken people's creativity for development Make new/creative methods or procedures for development TOTAL 3.570 3.720 3.788 3.559 3.547 3.637 Moderate High High Moderate Moderate Moderate public (5.6%, moderate 14.5%, high 14.5%) or private universities (low 10.6%, moderate 25.7%, high 29.1%). All the universities tend to be moderate and high on Organizational Innovation. It seems they try very hard to fulfill the expectation of

the Ministry of Higher Education of Indonesia on the level of

accreditation of study program or institution. The Ministry values on all efforts of learning process innovation of universities in Indonesia.

4.4. Multiple linear regression analysis The multiple linear regression

analysis was done to recover out the

influence of various independent variables on the dependent variable.

The regression model of

this research can be viewed in Table 11, and the equation of the multiple linear regression was: The value 0.241 was the constant which indicated the size of Organizational Innovation if not influenced by

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was applied to assess the ability of the regression model to explain the

dependent variable. The value of the determinant coefficient can be pictured in Table 12 in the R Square column. Table 12 shows that the value of the determinant coefficient was 0.715 or 71.5%, which meant that Organizational Learning Capa- bility and Organizational Creativity influenced Organizational Innovation as much as 71.5%, while the other 28.5% was influenced by other variables. 4.6. T test (individual significance test) The t-Test was performed to find out whether the independent Table 11 The multiple linear regression analysis. Variable Unstandardized coefficients Constanta Organizational Learning Capability Organizational Creativity 0.241 0.296 0.605 Y ¼ 0.241 þ 0.296X1 þ 0.605X2. The result of the multiple linear regression equation had the following meanings. Table 12 Determination coefficient.

Model R R square Adjusted R square Std. error of the estimate 1 0. 846a 0. 715 0. 712 0. 47327 a Predictors: (Constant),

Organizational Learning Capability, Organizational Creativity. Table 13 T test. Variable T table T count Significance count Organizational Learning Capability 1.684 Organizational Creativity 1.684 4.662 8.965 0,00 0,00 variable, influenced the explanation of

the dependent variable. The result of the t-test can be seen in Table 13 with the

hypothesis H0: bi 0, which meant that Organizational Learning Capability variable or Organizational Creativity variable did not significantly influence Organizational Innovation, and Ha: bi > 0 which meant that Organizational Learning Capability variable or Organizational Creativity variable significantly influenced Organizational Innovation. Table 13 shows that calculated t of Organizational Learning Capacity and Organizational Creativity were larger than table t which was 1.684, namely 4.662 and 8.965. The second method was by observing the significance value. The significance values of Organizational Learning Capability and Organizational Creativity were smaller than 0.05, which were respectively 0.00. Established along the formula given above, the answer was that hypothesis zero (H0) was rejected. In other words, the alternative hypothesis (Ha) could be accepted, which meant that Organizational Learning Table 10 Descriptive analysis of Organizational Innovation. Indicator Statement Indicator mean Description Utilizing/executing new ideas Utilizing/executing new behaviors Utilizing/executing new products Utilizing/executing new academic services Utilizing/executing new technologies Utilizing/executing new administrative practices Utilize/execute new ideas for development Utilize/execute new behaviors for development Utilize/execute new products for development Utilize/execute new academic services for development Utilize/execute new technologies for development Utilize/execute new administrative practices for development TOTAL 3.564 3.508 3.486 3.425 3.419 3.402 3.467 Moderate Moderate Moderate Moderate Moderate Moderate Moderat E.M. Sutanto /

Asia Pacific Management Review xxx (2017) 1e8 7

Capability variable or Organizational Creativity variable positively and significantly influenced

Organizational Innovation. 4.7. F test (simultaneous significance test) The F test was performed to find out if all the independent variables simultaneously influenced the dependent variable. The results of the F

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following hypothesis: H0: b1 b2 … bk 0 which meant that Organiza- tional Learning Capability and Organizational Creativity did not significantly influence Organizational Innovation, and Ha: b1 > b2 > … > bk > 0 which meant that

Organizational Learning Capability and Organizational Creativity significantly influenced Organizational Innovation.

Table 14 shows that the significance value was <0.05, namely 0.00 so that hypothesis zero (H0) was refused. In other words, the alternative hypothesis (Ha) was accepted, which meant that

Organizational Learning Capability variable and Organizational

Creativity variable significantly influenced Organizational Innovation.

5. Discussion The result of the multiple linear regression statistical test shows that the relationships between the researched variables, both partially and simultaneously, had positive and significant in-fluences. These findings confirmed the findings of previous researches. Organizational Learning Capability was a positive driving factor for Organizational Innovation as

can be seen in Table 13 which shows that the calculated t

of Organizational Learning Capability and Organizational Creativity was larger than table t which was 1.684, namely 4.662, while the significance values of Organizational Learning Capability and

Organizational Creativity were smaller than 0.05, which were respectively 0.00. The greater the innovation achieved by an organization, the greater also the learning and the change needed by the organization. The creation of

organizational knowledge through which new knowledge is derived from

existing knowledge (organizational learning)

stimulates Organizational Innovation (Sanz-Valle et al., 2011). A high innovation requires a high and effective organizational learning capability (Ho, 2011). A learning organization is an innovative or-ganization (Nooteboom, 2010, p. 131).

Organizational learning capability has a positive and significant

influence on the

company's innovation (Chung

et al., 2011; Jimenez-Jimenez & Sanz-Valle, 2011;

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can be seen in Table 13 which shows that the calculated t

of Organizational Creativity and Organizational Innovation was larger than table t which was 1.684, namely 8.965, while the significance values of Organizational Creativity and Organizational Innovation were smaller than 0.05, which were respectively 0.00. This finding agreed with the finding of De Sousa et al. (2012) who proposed that innovation was an

implementation of successful creative ideas in an organization. According to this view, individual and group creativity

was the starting point of innovation. However, a successful innovation also depended on other factors such as transfer of technology. Stamm (2008) also Table 14 F test. Variable Significance count Organizational Learning Capability Organizational Creativity 0,00 stated that creativity was an important element of innovation. A company needs processes, procedures, and structures which enable timely and effective execution of projects so that its products are really innovative.

Creativity has typically examined the stage of idea generation, whereas innovation studies commonly also include the latter phase of idea implementation.

Creativity and innovation in any organization are vital to its successful performance

(Anderson, Potocnik, & Zhou, 2014). Table 14 shows

that Organizational Learning Capability variable and Organizational Creativity positively and significantly influenced Organizational

Innovation

with the significance value < 0.05, namely 0.00. The size of the influence of these two

independent variables on the dependent variable was considerably large.

This is shown in Table

12 which indicates that the determinant coefficient was 0.715 or 71.5%, which meant that

Organizational Learning Capability and Organizational Creativity influenced Organizational Innovation

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to persuade prospect students and their parents. Private universities do not want to be left behind from state universities such as what happened in many developed countries. Innovation is very important for any organizations including higher education institutions. Without such well-planned and systematic efforts they could not survive in the long term. Inno- vation is a must. A university administrator or leader should create innovation continuously on its programs, education or learning processes, networking and partnerships. Furthermore, a university leader who had the capability to create new ideas and generalize them in order to bring the impacts on his department would always strive creatively to create new products, services, ideas, procedures, or processes to enhance the organizational innovation expected by his organization. This such leadership will create a positive learning environment and creativity which are beneficial for boosting innovation of the institution. Utilizing information and communication technology creatively and extensively in all university processes could become a competitive strategy. Instead of delivering lectures on a traditional way, e-learning is a creative method that could fulfill the expectations. For those busy students, they don't need to attend physically in the class, but they still could involve in the learning process intensive and actively. It will be much more efficient and effective process either for students or university. The internet development has been changing the world, including education or learning process. It provides so many resources which can support extensively. The university leaders have to stimulate innovation climate in their each department such as providing chances and rewarding all creative and innovative ideas on operational processes. An in- tegrated online management information system, for example, will improve the service quality and also will increase the satisfaction of stakeholders including students, parents, staffs, etc. 6. Conclusion and suggestion Organizational Learning Capability and Organizational Crea- tivity have significantly influenced Organizational Innovation. So it is

recommended for the policy makers in establishing innovative universities. Extending learning and creativity environment throughout university will increase many new ideas for improving its service quality. The policy makers should apply a participative leadership instead of autocratic leadership. Increasing freedom of speech in the universities will create positive climate. People tend to be dare delivering their new ideas. The more people involve in the system, the more improvement of learning, creativity, and innovation process grow fast. To establish the research results more strongly among universities, we hope that similar researches may be developed in a more extensive scale which involve all the provinces in Indonesia and all elements of the university (lecturers, students, alumni). References Anderson, N., Potocnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of Management, 40(5), 1297e1333. Aragon-Correa, J. A., Garcia-Morales, V. J., & Cordon-Pozo, E. (2007). Leadership and organizational Learning's role on innovation and Performance: Lessons from Spain. Industrial Marketing Management, 36(3), 349e359. Bello, D. C., Lohtia, R., & Sangtani, V. (2004). An institutional analysis of supply chain innovations in global marketing channels. Industrial Marketing Management, 33(1), 57e64. Brown, R. T. (1989). Creativity: What are we to measure? In J. A. Glover, R. R. Ronning, & C. R. Reynolds (Eds.), Handbook of creativity (pp. NY, 3e32). New York: Plenum Press. Bueno, E., & Ordoneez, P. (2004). Innovation and learning in the knowledge based Economy: Challenges for the firm. International Journal of Technology Manage- ment, 27(6/7), 531e533. Chung, H. F., Sue, T. C., & Guan, L. C. (2011).

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Sutanto / Asia Pacific

Management Review xxx (2017) 1e8 Please cite this article in press as:

Sutanto, E. M.,

The influence of organizational learning capability and organizational creativity on organizational innovation of Universities in East Java,

Indonesia, Asia Pacific Management Review

(2017), http://dx.doi.org

/10.1016/ j. apmrv .2016. 11.002 Please cite this article in press as:

Sutanto, E. M.,

Sutanto, E. M., The

influence of organizational learning capability and organizational creativity on organizational innovation of Universities in East Java,

Sutanto, E. M.,

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Sutanto, E. M.,

The influence of organizational learning capability and organizational

creativity on organizational innovation of Universities in East Java,

Sutanto, E. M., The

influence of organizational learning capability and organizational

Sutanto, E. M.,

The influence of organizational learning capability and organizational

(2017),

http://dx.doi.org/10.1016/ j.apmrv. 2016.11 .002